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Aberration Commodity Trading System

NOTICE: “HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.”

NOTICE: "HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

The Aberration trading system was developed in 1986 to trade a basket of commodities. It profitably trades across all eight commodity groups: the grains, meats, softs, metals, petroleum products, currencies, financials, and stock indices using the exact same rules and parameter value. The system trades each commodity 3 to 4 times per year and is in each market about 60 percent of the time. This longer term trading approach yields an average profit of about $665 per trade across 57 worldwide commodities after slippage and commission are deducted.

Performance by Commodity

The key to Aberration's consistency is diversification across the commodity groups. While some systems only trade the currencies, financials, or stock indices, Aberration profitably trades all eight of the commodity groups. The exposure to all groups allows profits from the "moving" group to make up for losses in other groups. In the course of a year, one or more commodities in each group will make a big move. Aberration will pinpoint these, and the profits from those trades will more than offset the losses from the other groups. System performance, by commodity, from March 1980 through August 2002 is shown below. These figures were generated using continuous, back-adjusted contracts. Slippage and commission was accounted for by deducting $75 per each 60 trading days a trade lasted.

Commodity	Profits (Dollars)	Maximum Start-Trade Drawdown (Dollars)	Percent Wins	Profit Per Trade (Dollars)
Grains
Corn	22,650	3,275	50.0	404
Oats	950	6,625	29.0	15
Soybeans	-4,888	30,800	33.3	-68
Bean Meal	-9,770	35,180	26.8	-138
Bean Oil	8,757	7,103	40.0	145
Wheat	10,025	12,125	35.1	179
KC Wheat	20,937	7,625	37.5	373
Rough Rice	22,224	7,674	50.0	617
Meats
Live Cattle	-450	12,025	34.3	-8
Live Hogs	785	15,395	38.3	13
Pork Bellies	4,234	15,485	35.2	78
Feeder Cattle	-9,350	23,700	25.4	-149
Softs
Coffee	120,074	8,212	40.7	2,223
Cotton	51,479	11,165	37.5	919
Cocoa	-18,995	36,855	27.1	-272
Sugar	25,443	4,683	43.9	446
Orange Juice	1,425	26,174	35.0	23
Lumber	56,386	8,464	50.0	1,084
Metals
Copper	14,775	8,575	37.7	242
Palladium	66,155	6,113	47.9	1,378
Silver	30,095	26,384	35.7	537
Gold	20,350	11,685	37.9	350
Platinum	-2,850	22,570	33.9	-46
Ldn Copper	29,877	17,800	41.4	515
Ldn Alum	10,112	13,062	44.1	297
Ldn Al Alloy	19,475	2,650	52.4	927
Ldn Nickel	117,564	4,380	51.9	2,260
Energies
Crude Oil	61,935	5,220	62.2	1,376
Heating Oil	45,519	19,276	50.0	842
Unleaded Gas	20,663	8,058	43.5	449
Natural Gas	49,859	6,174	48.5	1,510
Propane	36,819	4,787	53.3	1,227
Currencies
Japanese Yen	140,949	4,037	52.8	2,659
Swiss Franc	95,337	8,474	54.9	1,869
Euro-Currency	30,137	3,387	39.1	1,310
Can. Dollar	5,109	11,635	42.9	104
British Pound	79,350	17,462	43.1	1,555
Dollar Index	54,725	8,364	51.4	1,479
Mex. Peso	1,049	13,012	41.2	61
Aust. Dollar	-8,341	15,030	40.5	-199
Financials
T-Bonds	40,818	10,362	50.0	728
T-Notes (10yr)	64,290	8,518	58.5	1,568
T-Notes (5yr)	28,959	3,553	63.3	965
T-Notes (2yr)	30,650	3,131	59.3	1,135
Euro Dollars	26,281	9,824	43.1	515
Muni Bonds	62,943	6,906	61.8	1,851
Notionnel Bond	36,223	4,274	58.8	1,065
Canadian Bond	10,394	12,357	38.7	335
Japanese Bond	11,235	6,571	33.3	535
Spanish Bond	43,110	4,520	61.1	2,395
Austr. Bond	34,419	13,600	40.8	702
Swiss Bond	26,982	4,030	63.2	1,420
Euro Bund	30,855	3,238	52.2	1,341
Long Gilt	17,679	21,289	45.1	346
Stock Indices
S&P 500	39,100	16,312	33.3	685
NYSE	-11,725	21,474	29.3	-203
Nikkei	62,675	3,025	55.2	2,161

Aberration Commodity Trading System

Performance by Commodity

Grains

Meats

Softs

Metals

Energies

Currencies

Financials

Stock Indices